Tag Archives: bankruptcy trustee
The Bankruptcy Trustee’s Power to Set Aside Certain Payments to Creditors
Debtors planning on bankruptcy often make payments to certain creditors weeks or months ahead of filing. When a debtor makes a payment that unfairly benefits one creditor over others, this is known as an avoidable preference. Whether the payment is made voluntarily (by writing a check to a creditor) or involuntarily (through wage garnishment), the […]
Powers and Duties of a Chapter 11 Debtor in Possession
A Chapter 11 bankruptcy allows a business facing insolvency to reorganize its debts so that it can have a chance to return to financial health. In most cases, the business continues to be operated by its owner, but under the supervision of the bankruptcy trustee. The owner becomes a debtor in possession. The role of […]
